$*****$

Business Loss, Higher Itemized Deductions

Wages: Sarah $($$$65,000),$ William $($$$42,000)$

Qualified Business Income: William $($$$35,000)$

Itemized Deductions: $$38,000($includes student loan interest and significant medical expenses$)$

Allowable deduction for self$-$employment tax: $$2,800$

Calculate AGI and taxable income.